Assess whether the exam response should concede a finding (ab398d)

SITUATION After a HMDA resubmission that still fails quality edits, SPCP written plan versus actual originations is what second-review underwriter can touch in a lender expanding into majority-minority census tracts. Fair Lending will live with Remove access or reverse the item versus Temporary compensating control on this CRA and Special-Purpose Programs file.

DECISION Second-review underwriter in a lender expanding into majority-minority census tracts must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using SPCP written plan versus actual originations after a HMDA resubmission that still fails quality edits.

HYPOTHESES TO TEST 1. Second-review underwriter can defend Remove access or reverse the item from SPCP written plan versus actual originations after a HMDA resubmission that still fails quality edits in a Fair Lending challenge. 2. Second-review underwriter cannot defend Remove access or reverse the item from SPCP written plan versus actual originations; Temporary compensating control is what the extract actually supports after a HMDA resubmission that still fails quality edits. 3. A HMDA resubmission that still fails quality edits never reached the population in SPCP written plan versus actual originations — reopen intake, do not close the exam response should. 4. Two facts in SPCP written plan versus actual originations after a HMDA resubmission that still fails quality edits conflict for second-review underwriter; hold this CRA and Special-Purpose Programs file.

ANALYSIS REQUIRED 1. Test a documented exception versus a pattern a lender expanding into majority-minority census tracts must defend. 2. Match the adverse-action language to the facts in SPCP written plan versus actual originations. 3. Check HMDA coding and underwriting policy against the exam response should. 4. For this Fair Lending CRA and Special-Purpose Programs file, read SPCP written plan versus actual originations against a HMDA resubmission that still fails quality edits and write the one fact that would move the exam response should for second-review underwriter.

RECOMMENDATION Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Fair Lending / CRA and Special-Purpose Programs packet (SPCP written plan versus actual originations after a HMDA resubmission that still fails quality edits). Lead with the Fair Lending option SPCP written plan versus actual originations can support after a HMDA resubmission that still fails quality edits, then the two facts that force it, then the Monday action for second-review underwriter in a lender expanding into majority-minority census tracts.